Property Exchange Australia (PEXA) has upgraded its digital conveyancing platform in response to recent changes in the law covering payment of goods and services tax (GST).
The changes the company has made to the GST payments management system it runs on its platform provide greater transparency and certainty to all parties concerned in property settlements.
Legislative changes came into effect at the start of July as the government aims to reduce the $1.8bn owed in GST to the federal government and a scheme, known as “phoenixing,” where companies declare insolvency and then restructurer to avoid paying debts and taxes.
With the changes, buyers are now responsible for paying GST directly to the Australian Taxation Office on the price of new residential premises or potential residential land. Developers were previously responsible for the payment.
“The PEXA platform provides transparency for all parties and added assurance that the new process has been adhered to. The ability to complete GST at settlement through an e-Conveyancing transaction provides certainty for all involved in property exchange,” said Mike Cameron, PEXA Group executive, customer and revenue.
Shane Jacob, national president of the Australian Institute of Conveyancers (AIC), said that the AIC is continuing to help members adapt to the legislative change with information and training programs.
“Through PEXA, we have the clarity we don’t get in the paper-based world that the GST for relevant properties had been captured. I see this as a best practice for the industry that is both fast and efficient,” Jacob said.
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